Consulting · Economics
Mining Project Evaluation & Economic Analysis
Discounted cash-flow models, cost estimation and sensitivity analysis that quantify value and underpin confident, data-driven decisions at every stage of the mining lifecycle.
Turning the plan into a number
Rigorous economics, transparent assumptions
Economic analysis is where the technical plan becomes an investment case. We build clear, auditable discounted cash-flow models that translate designs, schedules and cost estimates into the metrics decision-makers actually use — NPV, IRR, payback and free cash flow — from preliminary economic assessment through to bankable feasibility.
Just as important as the result is the transparency behind it.
A model is a decision tool, not a black box. We make the assumptions visible and the sensitivities clear.
Scope
What our economic analysis service covers
Cash-flow modelling
Auditable DCF models that integrate production schedules, costs, prices and taxes.
Cost estimation
Capital and operating cost estimates appropriate to the study stage and accuracy target.
Value metrics
NPV, IRR, payback and free cash-flow analysis to assess and compare options.
Sensitivity analysis
Single- and multi-variable sensitivity and scenario testing on the key value drivers.
Option comparison
Consistent, value-based comparison of development and operating alternatives.
Valuation support
Technical inputs to project valuation and investment decisions, aligned with VALMIN where relevant.
Outcomes
Decisions grounded in evidence
- A transparent, auditable financial model the team can interrogate
- Clear NPV, IRR and payback metrics for each case considered
- Sensitivity analysis that identifies and ranks the real value drivers
- Cost estimates aligned to the study stage and reporting requirements
- Economic inputs ready to support study reporting, valuation and financing
FAQ
Economic analysis, answered
What is a discounted cash-flow (DCF) model?
A DCF model projects a project's future cash flows — revenue, operating costs, capital, royalties and taxes — and discounts them to a present value, producing metrics such as NPV, IRR and payback that quantify economic value over time. In our studies the DCF integrates the resource, mine design, schedule and cost estimates, so the financial case is traceable back to its engineering inputs.
Why is sensitivity analysis important?
Mining projects are exposed to uncertain prices, grades, costs and timing. Sensitivity and scenario analysis quantifies how value responds to each input — identifying the variables that matter most, the break-even points, and the risks that need managing before capital is committed.
How does economic analysis fit into a study?
Economic analysis is the integrating workstream of every study stage from scoping to DFS: it draws the resource, design, schedule and cost work together into the financial case that determines whether a project proceeds, and it provides the economic assessment the JORC Code requires among the modifying factors for an Ore Reserve. Where public reporting of valuations is involved, work is framed by the VALMIN Code 2015.
Sources: VALMIN Code 2015 (valmin.org) · JORC Code 2012 (jorc.org)
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Need the numbers to stand up?
Discounted cash-flow models, cost estimation and sensitivity analysis. Tell us the decision and we will build the case.